Corporate Social Responsibility (CSR) ticks many boxes: by using personnel, a bit of cash and key skills, companies can add value to a charity, cause, or initiative which has a social or environmental benefit. At the same time it keeps shareholders, stakeholders and staff happy, is great for PR and builds brand loyalty.
“It’s more strategic than a cash donation and more far-reaching than straightforward sponsorship,” says Rachel Linn, senior consultant with The Social Investment Company, which advises companies on CSR programmes.
Women’s sports clothing company, Sweaty Betty, has developed a programme from its mission statement “empowering women through fitness”. Like many of the best ideas, this is gloriously simple: rails are pushed aside in Sweaty Betty boutiques after hours and a variety of free activities are put on offer: yoga, body attack, running, Pilates, boxing, bootcamp, barre club, Zumba. This builds brand loyalty and provides PR and word of mouth marketing in a cost effective way, while providing a service and giving back to its customers.
Similarly, in its role as an official sponsor of the London 2012 Olympic Games, Adidas synergistically teamed up with The Great Outdoor Gym Company, and public sector partners, to open 70 free outdoor fitness facilities. Research by Nielson, in 2010, showed that adiZones broke down barriers to participation for those in the hard to reach groups, including those on low incomes and ethnic minorities.
BRAND REPUTATION
Linn says the millenial generation is more ethical than previous generations in its outlook and so CSR is good for companies from a staff recruitment and retention point of view. She says research has shown people would take a 15 per cent pay cut in order to work for a company which shows good ethics. CSR is also good from a consumer point of view. “Research by Adelman shows people are more likely to recommend a brand which supports a good cause,” says Linn. “People will also pay more for an ethical product.”
Additionally, CSR is effective for business reputation and recognition. In the past, Nike has received negative publicity about using sweatshops, which affected the share price. Since then it has used CSR to improve its brand identity, including its Designed to Move programme in the UK. This multi-organisation approach aims to find a way to make physical activity a lifelong habit.
VIRTUOUS CIRCLE
Linn recommends that if a company wants to invest in CSR it should assess its strengths and assets to look at where it could add value and be open to collaboration. “Companies should be willing to learn from charity partners and take feedback to evolve the programme in the best possible way,” she says. "Adaptability and sustainability are the keys to successful projects."
On the flip side, if an organisation wants to attract a corporate they should do their research about which companies might fit with their aims and think about how they could work together to reach the goals. “Have a very clear propisition about what you want to achieve,” says Linn. “Be clear about your needs and wants and create something meaningful.”
It's also important to be realistic with expectations: a moderate request for investment is more likely to be successful. In most cases, companies still want to see a return on their investment.
As our case studies reflect, when companies share a joint vision, a virtuous circle is created, with both feeding off each other's enthusiasm in the pursuit of their joint mission.